Allstate 2014 Annual Report Download - page 246

Allstate Financial’s reinsurance recoverables on paid and unpaid benefits as of December 31 are summarized in the
following table.
2014 2013
($ in millions)
Annuities $ 1,594 $ 1,648
Life insurance 916 1,029
Long-term care insurance 80 78
Other 117 117
Total Allstate Financial $ 2,707 $ 2,872
As of December 31, 2014 and 2013, approximately 94% and 92%, respectively, of Allstate Financial’s reinsurance
recoverables are due from companies rated A- or better by S&P.
11. Deferred Policy Acquisition and Sales Inducement Costs
Deferred policy acquisition costs for the years ended December 31 are as follows:
2014
($ in millions)
Allstate Property-
Financial Liability Total
Balance, beginning of year $ 1,747 $ 1,625 $ 3,372
Classified as held for sale, beginning balance 743 — 743
Total, including those classified as held for sale 2,490 1,625 4,115
Acquisition costs deferred 280 4,070 4,350
Amortization charged to income (260) (3,875) (4,135)
Effect of unrealized gains and losses (98) — (98)
Sold in LBL disposition (707) — (707)
Balance, end of year $ 1,705 $ 1,820 $ 3,525
2013
Allstate Property-
Financial Liability Total
Balance, beginning of year $ 2,225 $ 1,396 $ 3,621
Acquisition costs deferred 364 3,903 4,267
Amortization charged to income (328) (3,674) (4,002)
Effect of unrealized gains and losses 229 — 229
Classified as held for sale (743) — (743)
Balance, end of year $ 1,747 $ 1,625 $ 3,372
2012
Allstate Property-
Financial Liability Total
Balance, beginning of year $ 2,523 $ 1,348 $ 3,871
Acquisition costs deferred 371 3,531 3,902
Amortization charged to income (401) (3,483) (3,884)
Effect of unrealized gains and losses (268) — (268)
Balance, end of year $ 2,225 $ 1,396 $ 3,621
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